SBI Pure Strategy Portfolios
| Date Updated: 03/31/2010 |  Download Pure Portfolio Overview |
Investment Overview
The SBI Pure Valuation-Profitability Stock Portfolio uses a proprietary methodology to identify and invest in a focused portfolio of no more than 20 stocks. Stocks are equally weighted and are rebalanced when one becomes significantly under or over weighted. There is no explicit market-cap constraint on the stocks considered for the portfolio, but the methodology favors smaller stocks. Funds are invested at least 95% in US stocks, with the remainder invested in cash. No attempt is made to anticipate and time broad market movements.
Each month, US stocks are screened based on balance sheet, projected earnings, revenues, dividends, price ratios, and trading volume. Those meeting the established criteria are then considered for inclusion in the portfolio.
A stock is sold and replaced when it fails to meet the established criteria. Price based selling criteria, such as stop loss orders, are not employed.
Investment Process
The only SBI Pure portfolio that is currently available for investment is the SBI Pure Valuation | Profitability portfolio. The portfolio follows the investment process outlined below.
| STEP 1 |
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| Low Net Worth Stocks |
Stocks with low or even negative net worth are selected. | |||
| STEP 2 |
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| High Dividend Yield | Screen stocks for a high dividend yield. |
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| STEP 3 |
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| Valuation and Risk Control |
Further screen using various price ratios and limit risk by focusing on company size and sector concentration. | |||
| STEP 4 |
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| Sell Discipline |
Hold stocks as long as they meet established criteria. Sell a stock when it fails a criterion and replace it with the next best alternative. |
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| View Portfolio Details |